Knot Offshore Partners Lp · NYSE:KNOP
Knot Offshore Partners Lp — Q2 2013 Earnings Presentation
17 slides from Knot Offshore Partners Lp's earnings presentation, Aug 27, 2013
Slide 1: Second Quarter Results 2013
Second Quarter Results 2013 August 27, 2013
Slide 2: Notice to Recipients
Notice to Recipients(update) This presentation is not a prospectus and is not an offer to sell, nor a solicitation of an offer to buy, securities. Except for the historical information contained herein, the matters discussed in this presentation include forward-looking statements that involve risks
Slide 3: Highlights & Recent Events
Highligts & Recent Events KNOT Offshore Partners L.P. reports results for the second quarter 2013 following its successful initial public offering completed in April 2013 For the second quarter 2013, KNOT Offshore Partners LP: – Generated net income of $4.0 million and operating income of $7.4 m
Slide 4: Highlights & Recent Events
Highligts & Recent Events Management recommends the board to increase distributions by 6 cent per quarter from third quarter 2013, representing an increase in distributions of 16% Significant potential for further growth; initially from the four defined dropdown candidates 4
Slide 5: Summary unaudited condensed consolidated and combined carve-out statement of operations
Summary unaudited condensed consolidated and combined carve- out statement of operations Vessel operation in line with forecast (USD in thousands) Three months Three months Ended June 30, Ended June 30, 2013 2012 – 99.9% uptime (unaudited) (unaudited) Time charter and bareboat revenues (1) 17,268
Slide 6: Summary Unaudited Condensed Consolidated and combined carve-out Balance sheet
Summary Unaudited Condensed Consolidated and combined carve-out Balance sheet At June 30, Total cash of $27.1 million, In addition an (USD in thousands) 2013 (unaudited) undrawn revolving credit facility of $20 ASSETS Current assets: million Cash and cash equivalents 25,218 Interest bearing debt
Slide 7: Distributable cashflow
Distributable cashflow Three months Ended June 30, (USD in thousands) 2013 (unaudited) Net income 3,971 Add: Depreciation and amortization 5,340 Unrealized loss from interest rate derivatives 434 IPO expenses covered by Knutsen NYK Offshore Tankers AS 60 Other non-cash items; deferred costs amortiza
Slide 8: Adjusted EBITDA
Adjusted EBITDA Three months (USD in thousands) Ended June 30, 2013 (unaudited) Net income 3,971 Interest income (3) Interest expense 2,529 Depreciation and amortization 5,340 Income tax (benefit) expense - EBITDA 11,837 Other financial items (a) 911 Adjusted EBITDA 12,748 (a) Other financial items
Slide 9: Expected Restatement of 2012 Results
Expected Restatement of 2012 Results Following discussion with the Partnership’s auditors, the board has determined to restate the the combined carve-out financial statements for the Predecessor for 2012 Purpose is to correct certain errors in IPO costs that has been deferred and capitalized on
Slide 10: Carmen Knutsen acquired August 2013
Carmen Knutsen acquired 01 August 2013 Carmen Knutsen is a 157 000 dwt shuttle tanker, built by Hyundai Heavy Industries and delivered to Knutsen NYK Offshore Tankers in January 2013. The vessel is currently trading in Brazil under a fixed time-charter contract with Repsol Sinopec until February 201
Slide 11: Overview of Sponsors and Partnership Structure
Overview of Sponsors and Partnership Structure Overview of Nippon Overview of TSSI Yusen Kaisha (“NYK”) Individual One of the largest private Public Owners Owners Publicly listed company on shipping companies in Norway the Tokyo, Osaka and Nagoya Stock Exchanges Dates back to 1984 NYK TSSI AS
Slide 12: Long-term Contracts Backed by Leading Energy Companies
Long-term Contracts Backed by Leading Energy Companies Capacity Name (DWT) Charterer Type 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Fortaleza Knutsen 106 316 Bareboat Average Remaining bareboat charter contract life: Recife Knutsen 105 928 Bareboat 9.9 years Time Carmen Knutsen 157 000
Slide 13: Dropdown Fleet Overview
Dropdown Fleet Overview Fixed Contract Option Yard (1) Expected area of operation. 13
Slide 14: Summary
Summary Q2 operation as forecasted Following the first dropdown acquisition in August, management has recommended to the Board to increase distribution by 16% from Q3 Solid contract base Short term production delays in both Brazil and North Sea does not change demand picture for offshore shu
Slide 15: Thank you, any questions ?
KNOT Offshore Partners LP Thank you, any questions ?
Slide 16: Appendix 1: Shuttle Tankers: A Critical Component of Offshore Oil Infrastructure
Appendix 1: Shuttle Tankers: A Critical Component of Offshore Oil Infrastructure SHUTTLE TANKER OIL FIELD INSTALLATION OIL REFINERY / TERMINAL PIPELINE Advantages vs. Pipelines Key Differences vs. Conventional Tankers Superior, more economical alternative with lower initial Specially designed ta
Slide 17: Appendix 2: Knutsen NYK: Industry Leader with 2nd Largest Fleet
Appendix 2: Knutsen NYK: Industry Leader with 2nd Largest Fleet A Highly Experienced Operator Knutsen NYK is One of the Largest Operators in the Shuttle Tanker Sector (1)(2) Vessels Market leading shuttle tanker operator 35 with extensive experience 30 – 26 years of experience in offshore 25 buoy
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